U.S. Faces ‘Significant Risk’ of Running Out of Cash in June, Budget Office Warns

The Congressional Budget Office said on Friday that there was a “significant risk” that the federal government could run out of cash sometime in the first two weeks of June, setting the United States up for a default.

The warning came as the White House and congressional leaders spent the week in negotiations over how to raise the $31.4 trillion borrowing cap. The Treasury Department has been using accounting maneuvers known as extraordinary measures to keep paying the country’s bills without breaching that debt ceiling, which was officially reached on Jan. 19. But the department has said those tools could be exhausted as soon as June 1.

The nonpartisan budget office outlined the fiscal strain facing the government as the legislative standoff continues. It also noted that the timing and revenue coming into the government, as well as its expenditures, were hard to predict.

“If the debt limit is not raised or suspended before the Treasury’s cash and extraordinary measures are…

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This article was written by Alan Rappeport and originally published on www.nytimes.com